Interest Payments, Grace Periods, and Defaults

What you need to know about loan repayments and defaults.

Prorated Interest Payments

Loans on Kettle are fixed term with an expiration date, but interest is "pay as you go." If you repay a loan 2 days after you start it, you'll only pay 2 days of interest.

Grace Periods

Make sure to enable notifications as Kettle will send you in-app notifications with reminders leading up to your repayment date.

If you miss your repayment date, you'll have an additional 30 day "grace period" to repay your loan. Loans that enter a grace period will be subject to pay a penalty fee: the interest rate will be 2x the APR in the initial loan agreement. This increased interest rate will only apply across the interest accrued throughout the 30 day grace period, not the initial loan term.

Defaults and Asset Claims

Failure to repay your loan entirely (including the 30-day grace period) will result in your asset being defaulted. The lender can enter the claim portal to deposit the NFT into their account.